Employment Outlook for Economists

Employment of economists is projected to grow 6 percent from 2016 to 2026, about as fast as the average for all occupations.

Businesses and organizations across many industries use economic analysis and quantitative methods to analyze and forecast business, sales, and other economic trends. Demand for economists should come from the increasing complexity of the global economy, additional financial regulations, and a more competitive business environment.

Job Prospects

In general, job opportunities should be good. Job prospects should be best for those with a master’s degree or Ph.D., strong analytical skills, and experience using statistical analysis software.

Applicants with a bachelor’s degree may face strong competition for jobs. As a result, bachelor’s degree holders will likely find jobs in other occupations.

Typical Pay for Economists

The median annual wage for economists was $101,050 in May 2016.
The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $55,150, and the highest 10 percent earned more than $181,060.

In May 2016, the median annual wages for economists in the top industries in which they worked were as follows:

Finance and insurance

$124,660

Federal government, excluding postal service

111,310

Management, scientific, and technical consulting services

110,900

Scientific research and development services

102,000

State government, excluding education and hospitals

69,170

Most economists work full time. Some perform work that may require overtime hours. About 1 in 4 economists worked more than 40 hours per week in 2016.

What Economists Do All Day

Economists study the production and distribution of resources, goods, and services by collecting and analyzing data, researching trends, and evaluating economic issues.

Economists apply both qualitative and quantitative economic analysis to topics within a variety of fields, such as education, health, development, and the environment. Some economists study the cost of products, healthcare, or energy, while others examine employment levels, business cycles, exchange rates, taxes, inflation, or interest rates.

Economists often study historical trends and use them to make forecasts. They research and analyze data using a variety of software programs. They sometimes present their research to various audiences.

Many economists work in federal, state, and local government. Federal government economists collect and analyze data about the U.S. economy, including employment, prices, productivity, and wages, among other types of data. They also project spending needs and inform policymakers on the economic impact of laws and regulations.

Economists working for corporations help managers and decisionmakers understand how the economy will affect their business. Specifically, economists may analyze issues such as consumer demand and sales to help a company maximize its profits.

Economists also work for international organizations, research firms, and think tanks, where they study and analyze a variety of economic issues. Their analyses and forecasts are frequently published in newspapers and journals.

Work Environment for Economists

Economists held about 21,300 jobs in 2016. The largest employers of economists were as follows:

Federal government, excluding postal service

22%

Scientific research and development services

17

Management, scientific, and technical consulting services

15

State government, excluding education and hospitals

9

Finance and insurance

7

Economists typically work independently in an office. However, many economists collaborate with other economists and statisticians, sometimes working on teams. Some economists work from home, and others may be required to travel as part of their job or to attend conferences.

Economists spend much of their time using computers to analyze data, review research, or write findings.

In addition to working full time at a business or university, some economists consult part-time.

Work Schedules

Most economists work full time. Some perform work that may require overtime hours. About 1 in 4 economists worked more than 40 hours per week in 2016.

How To Become an Economist

Most economists need a master’s degree or Ph.D. However, some entry-level jobs—primarily in government—are available for workers with a bachelor’s degree.

Education

A master’s degree or Ph.D. is required for most economist jobs. Positions in business, research, or international organizations often require a combination of graduate education and work experience. In addition, courses that introduce students to statistical analysis software are helpful.

Students can pursue an advanced degree in economics with a bachelor’s degree in a number of fields, but a strong background in mathematics is essential. A Ph.D. in economics may require several years of study after earning a bachelor’s degree, including completion of detailed research in a specialty field.

Candidates with a bachelor’s degree may qualify for some entry-level economist positions, including jobs with the federal government. An advanced degree is sometimes required for advancement to higher level positions.

Other Experience

Aspiring economists can gain valuable experience from internships where the work involves gathering and analyzing data, researching economic issues and trends, and writing reports on their findings. In addition, related experience, such as using statistical analysis software, can be advantageous.

Important Qualities

Analytical skills. Economists must be able to review data in detail, observe patterns, perform advanced calculations, and draw logical conclusions. For example, labor economists analyze the effects of labor policies on employment.

Critical-thinking skills. Economists must be able to use logic and reasoning to solve complex problems. For instance, they might identify how economic trends may affect an organization.

Speaking skills. Economists must be able to explain their work to others. They often give presentations and explain reports to clients who may not have a background in economics.

Writing skills. Economists must be able to present their findings clearly. Many economists prepare reports for colleagues or clients; others write for publication in journals or for news media.